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Registration

Liability to register

Taxable Supplies

According to the VAT legislation, every person making taxable supplies is liable to be registered in the following cases:
(i) At the end of any month, if the value of his taxable supplies in the period of one year then ending has exceeded €15.600
(ii) At any time, if there are reasonable grounds for believing that the value of his taxable supplies in the period of thirty days then beginning will exceed €15.600.
A person who by virtue of (i) is liable to be registered, is obliged to notify the VAT Commissioner of his liability by submitting an “Application for Registration in the VAT Register” (Form VAT 101) to the local VAT Office, within thirty days of the end of the relevant month and his registration is effective as from the end of the month following the relevant month or from such earlier date as may be agreed between the person and the VAT Officer.
If a person is liable to be registered by virtue of (ii), he is obliged to notify the VAT Commissioner of his liability by submitting an “Application for Registration in the VAT Register” (Form VAT 101) to the local VAT Office, before the end of thirty-day period to which the liability arises and the registration is effective as from the beginning of this period.
Failing to comply, the person is liable to a levy of €85 for every month or part of month of the delay or refusal or omission.
It is clarified that the liability of a taxable person to be registered exists whether or not he has submitted an application for registration. The VAT Commissioner is authorized by the Law to register a taxable person retrospectively, that is from the date that person was, according to the Law, liable to registration. If a taxable person liable to registration neglects to be registered, he is still liable to pay tax on all the supplies he made from the date he was liable to registration.
It is noted that persons making zero-rated supplies are also liable to be registered.

Entitlement to register

A person not liable to be registered is entitled to be registered in the following cases:
(i) Voluntary registration
If a person makes taxable supplies the value of which does not exceed the thresholds that would make him liable to be registered, then he is entitled to apply for voluntary registration by submitting an “Application for Registration in the VAT Register” (Form VAT 101).
(ii) Intending traders
If a person engages in a business and intends to make taxable supplies of goods or services, he is entitled to apply to be registered as intending trader by submitting an “Application for Registration in the VAT Register” (Form VAT 101) .
The registration is effective from the date of the application or any other previous date as may be agreed between the VAT officer and the taxable person.
Additionally, farmers are entitled to voluntary registration, regardless of the value of the supplies they make in the period of one year, which consist of agricultural products of their own produce or agricultural services.

Relevant to the above is the information leaflet 3 “Registration in the VAT Register”.

Acquisitions

Any person making acquisitions in Cyprus is liable to be registered:

(a) at the end of any month , the total value of that person´s acquisitions from all other member States in the year beginning from 1 January has exceeded the registration threshold of €10.251,61; or
(b) at any time that there are reasonable grounds to believe that the value of the acquisitions that person would be making in the following 30 days alone will be over the registration threshold of €10.251,61;

A person making acquisitions according to the previous paragraph is liable to notify his/her obligation to be registered on Form VAT 106. Failure to comply, renders the person liable to a levy of €85 for every month of the delay or refusal or omission.

Where the acquisitions of any person does not exceed the threshold of €10.251,61, then that person may register for making acquisitions in Cyprus voluntarily.

Further information on Acquisitions may be found in information leaflet 3A “Acquisitions and Distance Sales.”

Distance Sales

Any person making distance sales (sales from a person established in another Member State), is liable to register for VAT purposes in Cyprus and account for VAT in Cyprus, if in the period starting from the 1st January of the year, the value of distance sales exceeds €35.000. This person is liable to notify liability to register on Form VAT 105. Failure to comply, renders the person liable to a levy of €85 for every month of the delay or refusal or omission.

There is also the right for voluntary registration when the threshold is not reached..

Further information on Distance Sales may be found in information leaflet 3A “Acquisitions and Distance Sales.”




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